Diagonal Pattern Clears the way to $28,650

There appears to be a diagonal pattern that completed at the recent low in bitcoin. There are 2 ways to count this.

Leading Diagonal: Pictured above is a leading diagonal. This implies a corrective rally. Corrective waves appear in three-wave structures. It appears the first wave is complete. Expect some softening back to $26,250 and possibly as low as $25,650 to be the second wave of the corrective rally. Then, a 3rd wave (C-wave) to around $28,650. From there, a larger top may form as the bottom falls out to below $25,000 likely reaching $22,400.


Ending Diagonal: This has some similarities to the leading diagonal except that the diagonal is wave C. The recent rally is wave 1 of a larger impulse. Expect a wave 2 decline to about $26,250, then a wave 3 rally to above $30,000. From there, higher levels are possible.

As you can see, both patterns have some overlap in what is to be expected next. A decline to $26,250, then a rally to $28,650 would be considered "normal" for bitcoin in the coming days.